Montana State Life Insurance Practice Exam

For how long must producers keep records of each insurance transaction?

1. 2 years

2. 3 years

3. 5 years

4. 7 years

The correct answer is: 3 years

Producers are required to maintain records of each insurance transaction for a minimum of three years. This retention period is set to ensure that both regulators and clients have access to necessary documentation for compliance, reference, or dispute resolution purposes. Keeping records for at least this duration allows producers to demonstrate adherence to legal requirements, track policyholder interactions, and manage any claims or audits that may arise during that timeframe. While other retention periods may seem appropriate, the three-year requirement aligns with industry standards and regulatory expectations in many jurisdictions, making it the correct duration for record-keeping in the field of insurance.